| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 34 | 36.0x | 17.8x | Bottom tier | |
Growth | 6 | -10.4% | 7.1% | Bottom tier | |
Quality | 62 | 3.6% | 4.5% | Around median | |
Safety | 80 | 0.4x | 2.6x | Top tier | |
Capital Return | 94 | — | 2.12% | Top tier | |
Momentum | 34 | 14.7% | 2.9% | Bottom tier | |
Sentiment | 85 | 17 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Enphase Energy sells distributed energy management solutions, including IQ microinverters, IQ batteries, electric vehicle chargers, and home control tools. Its core business relies on selling residential solar and storage equipment through distributors and installer networks, while expanding into commercial and industrial storage and data center electrical infrastructure. It also generates “safe harbor” revenue from selling equipment to third-party owners that plan to install it over a period exceeding one year.
In Q2 fiscal 2026, the company reported revenue of $291.9 million, up 3% sequentially, and shipped 1.59 million microinverters and 113.8 megawatt-hours of batteries. The United States represented 78% of revenue and international markets 22%, while revenue included $84.3 million of safe harbor sales, or about 29% of the total. European revenue increased 35% sequentially and sell-through grew 30%, while U.S. revenue declined 3% and U.S. sell-through fell 7% sequentially and 34% year over year.
GAAP gross margin was 60% in Q2 fiscal 2026, but it benefited by 15.6 percentage points from tariff refunds; adjusted gross margin was 46.8%. The company generated net income of $36.1 million and diluted earnings per share of $0.27, compared with a net loss of $7.4 million and a loss of $0.06 per share in Q1 fiscal 2026. Operating cash flow was $40.3 million and free cash flow was $25.9 million, with cash and marketable securities of $937.7 million as of June 30, 2026.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $44.9, compared with a high target of $57 and a low target of $24.47, while the consensus rates the stock “Neutral.” The average target falls within the 52-week range of $25.78 to $73.74 and is about 39% below its high, while the wide spread in targets reflects significant disagreement over whether growth in batteries, Europe, and commercial products can offset the decline in the U.S. residential market. This divergence is not resolved by a single profitability signal because Q2 fiscal 2026 combined a recovery in net income with a substantial exceptional benefit from tariff refunds.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Revenue was $291.9 million, up 3% sequentially, with shipments of 1.59 million microinverters and 113.8 megawatt-hours of batteries. European revenue growth of 35% offset the 3% decline in U.S. revenue, and U.S. markets accounted for 78% of the mix. Revenue also included $84.3 million of safe harbor sales, and GAAP net income was $36.1 million.
Europe showed tangible improvement in Q2 fiscal 2026, with sequential battery activation growth of about 102% in the Netherlands, 34% in France, and 30% in Germany. The company expects to ship 130 to 150 megawatt-hours of IQ batteries in Q3 fiscal 2026, compared with 113.8 megawatt-hours in the previous quarter. PROPEL supports U.S. demand with a battery attachment rate of approximately 75%, while the IQ Battery G5 targets a reduction in cost per kilowatt-hour of about 40% compared with the fourth generation.
PROPEL combines Enphase equipment with financing from TriBeam Financial and nationwide distribution through Green-Tech Renewables, targeting smaller installers in the U.S. market. By July 28, 2026, the program was operating in six states with more than 290 participating installers and a pace of about 200 installations per week. The plan targets expansion to 12 states by the end of Q3 fiscal 2026 and 500 installations per week by the end of 2026, but expansion depends on the availability of storage capacity and tax credit buyers.
The company planned to begin shipping the IQ Battery G5 in Q4 fiscal 2026, while targeting shipments of the commercial and industrial IQ Battery C80 in 2027. For IQSST, Enphase targets completing a fully operational system in 2026, beginning customer trials in 2027, and then commercial shipments in 2028. Therefore, G5 could support results over a nearer-term horizon, while contributions from commercial storage and data centers remain tied to execution extending through 2027 and 2028.
The United States accounted for 78% of Q2 fiscal 2026 revenue, and sell-through there declined 34% year over year under pressure from interest rates and the expiration of the 25D tax credit. Q3 fiscal 2026 guidance also included a two-percentage-point negative impact from reciprocal tariffs and assumed shipments approximately $15 million below sell-through. IQSST remains in development with commercially unproven reliability and multiple competitors, while the company does not expect commercial shipments before 2028.
The company ended June 30, 2026 with cash, cash equivalents, and marketable securities of $937.7 million, compared with $930.6 million at the end of Q1 fiscal 2026. It generated $40.3 million of operating cash flow and $25.9 million of free cash flow, with capital expenditures of $14.4 million. However, GAAP gross margin benefited by 15.6 percentage points from tariff refunds, so the adjusted gross margin of 46.8% provides a clearer measure of underlying operating performance.
